## Create the appliance
Import the downloaded file, and create an appliance.
1. Extract the zipped VHD file to a folder on the Hyper-V host that will host the appliance. Three folders are extracted.
2. Open Hyper-V Manager. In **Actions**, select **Import Virtual Machine**.

2. In the Import Virtual Machine Wizard > **Before you begin**, select **Next**.
3. In **Locate Folder**, specify the folder containing the extracted VHD. Select **Next**.
1. In **Select Virtual Machine**, select **Next**.
2. In **Choose Import Type**, select **Copy the virtual machine (create a new unique ID)**. Select **Next**.
3. In **Choose Destination**, leave the default setting. Select **Next**.
4. In **Storage Folders**, leave the default setting. Select **Next**.
5. In **Choose Network**, specify the virtual switch that the server will use. The switch needs internet connectivity to send data to Azure.
6. In **Summary**, review the settings. Select **Finish**.
7. In Hyper-V Manager > **Virtual Machines**, start the VM.
### Verify appliance access to Azure
Make sure that the appliance can connect to Azure URLs for [public](migrate-appliance.md#public-cloud-urls) and [government](migrate-appliance.md#government-cloud-urls) clouds.
### Configure the appliance
Set up the appliance for the first time.
> [!NOTE]
> If you set up the appliance using a [PowerShell script](deploy-appliance-script.md) instead of the downloaded VHD, the first two steps in this procedure aren't relevant.
1. In Hyper-V Manager > **Virtual Machines**, right-click the server > **Connect**.
2. Provide the language, time zone, and password for the appliance.
3. Open a browser on any system that can connect to the appliance, and open the URL of the appliance web app: **https://*appliance name or IP address*: 44368**.
Alternately, you can open the app from the appliance desktop by selecting the app shortcut.
1. Accept the **license terms**, and read the third-party information.
#### Set up prerequisites and register the appliance
In the configuration manager, select **Set up prerequisites**, and then complete these steps:
1. **Connectivity**: The appliance checks that the server has internet access. If the server uses a proxy:
- Select **Setup proxy** to specify the proxy address (in the form `http://ProxyIPAddress` or `http://ProxyFQDN`, where *FQDN* refers to a *fully qualified domain name*) and listening port.
- Enter credentials if the proxy needs authentication.
- If you have added proxy details or disabled the proxy or authentication, select **Save** to trigger connectivity and check connectivity again.
Only HTTP proxy is supported.
1. **Time sync**: Check that the time on the appliance is in sync with internet time for discovery to work properly.
1. **Install updates and register appliance**: To run auto-update and register the appliance, follow these steps:
:::image type="content" source="./media/tutorial-discover-vmware/prerequisites.png" alt-text="Screenshot that shows setting up the prerequisites in the appliance configuration manager.":::
> [!NOTE]
> This is a new user experience in Azure Migrate appliance which is available only if you have set up an appliance using the latest OVA/Installer script downloaded from the portal. The appliances which have already been registered will continue seeing the older version of the user experience and will continue to work without any issues.
1. For the appliance to run auto-update, paste the project key that you copied from the portal. If you don't have the key, go to **Azure Migrate: Discovery and assessment** > **Overview** > **Manage existing appliances**. Select the appliance name you provided when you generated the project key, and then copy the key that's shown.
2. The appliance will verify the key and start the auto-update service, which updates all the services on the appliance to their latest versions. When the auto-update has run, you can select **View appliance services** to see the status and versions of the services running on the appliance server.
3. To register the appliance, you need to select **Login**. In **Continue with Azure Login**, select **Copy code & Login** to copy the device code (you must have a device code to authenticate with Azure) and open an Azure Login prompt in a new browser tab. Make sure you've disabled the pop-up blocker in the browser to see the prompt.
:::image type="content" source="./media/tutorial-discover-vmware/device-code.png" alt-text="Screenshot that shows where to copy the device code and log in.":::
4. In a new tab in your browser, paste the device code and sign in by using your Azure username and password. Signing in with a PIN isn't supported.
> [!NOTE]
> If you close the login tab accidentally without logging in, refresh the browser tab of the appliance configuration manager to display the device code and Copy code & Login button.
5. After you successfully log in, return to the browser tab that displays the appliance configuration manager. If the Azure user account that you used to log in has the required permissions for the Azure resources that were created during key generation, appliance registration starts.
After the appliance is successfully registered, to see the registration details, select **View details**.
You can *rerun prerequisites* at any time during appliance configuration to check whether the appliance meets all the prerequisites.
### Delegate credentials for SMB VHDs
If you're running VHDs on SMBs, you must enable delegation of credentials from the appliance to the Hyper-V hosts. To do this from the appliance:
1. On the appliance, run this command. HyperVHost1/HyperVHost2 are example host names.